The Lincoln Electric Company Is A High Quality Manufacturer Of Welding Machines And Welding Equipment Essay

Lincoln Electric Company was founded by John C Lincoln in 1906 starting with a start up business in a one room, 4th floor factory to a bigger building and started to expand his workforce to 30 people and had a great expand in their sales as it grew over $50,000 a year. He was humble, preferably to be an engineer and inventor rather than sitting around being labelled as manager. The company also gave each of their employee as paid-up life insurance policy in the 1915. After 2 years, welding schools are introduced. A year after the success of forming a welding school, employee bonus plan was attempted.In the 1919 's, Lincoln Electric 's employees association are formed to introduced some social activities and health benefits to care for the workers. After becoming General Manager, in 1925; a purchase stock plan are enable for all employees. Lincoln bonus plan was finally accepted as a trial by the Advisory Board in 1934.

The founders of the Lincoln Electric Company left a legacy of an organization culture that promotes high productivity through sound management policies which have stood the test of time. The exponential growth of the company after the death of James F. Lincoln was a direct result of the establishment of a rich culture mix based on values that were widely shared and accepted by the members of the organization. Management empowered employees to become part of the decision making process through the contribution of ideas through the Advisory Board which was elected by the employees from amongst themselves. Reward management systems and all the other artifacts of the Lincoln Electric’s distinguished strong organizational culture will be analyzed in greater detail in this essay.

Lincoln Electric (LE) has been a producer of electrical and welding technology products since the late 1800's. The company remained primarily a family and employee held company until 1995, then approximately 40% of its equity went to the public. James Lincoln, one of the founders, developed unique management techniques that effectively motivated the employees. These management techniques were implemented as an unusual (for the era) structure of compensation and benefits called "incentive management". The incentive management system consisted of four key areas: factory jobs based solely on piecework output; a year-end bonus that could equal or exceeded an individual's regular pay; guaranteed employment; and limited benefits. Management

Primary features of the Lincoln Electric business model and employment system are displayed through the company’s overall strategy, philosophy, compensations and benefits policy, leadership, and communication within and outside the organization.

     Headquartered in Euclid, Ohio, a suburb of Cleveland, The Lincoln Electric Company is a world leader in welding and cutting products, as well as a premier manufacturer of electric motors. The company is well known for its dedicated, talented workforce and its superior technology. Lincoln Electric Company gives its customers total solutions along with a commitment to quality. Lincoln Electric Company is also well known for its incentive management system. Many companies strive to duplicate the success that Lincoln has enjoyed over the years.

In conclusion, this incentive system was crucial for Lincoln Electric Company’s success. However, it is difficult for the others to copy because it is based on the culture of competition and justice, which was set up in the very beginning. In the future, the effects of this system might be comparatively lower because machines, which don’t have incentive, are replacing workers in production. However, it still has advantage as there are people in the company, and their innovation in production line design will also benefit the company for long.

The Lincoln Electric was founded in 1895, and is the world leader in the design,

Lincoln Electric has been on top in relating to the country’s culture of the United States. James Lincoln realized that treating people fair and realized their needs will sustain the company for the long haul. For an example, in 2008 when the United States was in recession, many major corporations laid of its employees. The feeling of discontent was high in the United States. However, Lincoln Electric did not lay off one person. Instead, the company lower their hours until the recession is over. Not only this method saved the employees’ jobs and it also sustain their morals and spirits.

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

117 Years of Excellence; this is the header of the “Company History” section of Lincoln Electric’s website. I began the analysis at the careers section, looking through a variety of job descriptions and qualifications. The common requirements for management on the site are a Bachelor’s degree (Masters preferred), 5+ years of previous management experience, experience with Lean/Six Sigma tools to create impactful business improvements, proven experience in implementing and/or running an operation in an SAP environment, high level of integrity, confidentially, and accountability, sound analytical thinking, planning, prioritization, and execution skills, a well-defined sense of diplomacy, including solid negotiation, conflict resolution, and people management skills.

Lincoln Electric Company separated itself from the competitors for its innovative policies. For instance, hours were reduced from to 55 to 50 hours a week. Life insurance was offered to each employee. A welding school was created, which it still exists today. “An employee bonus” was contemplated but was not accomplished successfully. But until now, the employee bonus remains in the Lincoln management system. In addition, employees were empowered to form an association, which let to health benefits and other things. Furthermore, employees received two weeks of paid vacation and raises. These are the benefits that continue up to this day.

For instance, hours were reduced from to 55 to 50 hours a week. Life insurance was offered to each employee. A welding school was created, which it still exists today. “An employee bonus” was contemplated, but was not accomplished successfully. But until now, the employee bonus remains in the Lincoln management system.

brother join the company and subsequently became general manager and vice president in 1914. One of James early actions was to have a committee that would advise him on company operations. Employees was asked to elect representatives to the committee. They met twice monthly with the executive officer ever since. A welding school was formed in 1917 and still continues today. In 1918 an employee bonus plan was initiated then discontinued. It returned later on however. In 1934 the bonus plan was purposed by the advisory board, their has been a bonus every year since then. In 1919 the Lincoln Electric Employees Association was formed providing health benefits and social activities. This has continued today with added functions. The board of directors started a suggestion system that is still in effect today. At least since 1935 Lincoln productivity has been well above the average productivity vs. similar companies.

The Lincoln electric company founded by John C. Lincoln is known as the world’s largest manufacturer of welding machinery and electrodes. The Lincoln electric company, is one of the influential and leading manufacturers of welding machines and electrodes as compared to other companies located around the globe that are known for the manufacturing of welding machines and electrodes. This company has several outlets in different countries that also engage in the same production of the electrodes and the machinery.

After the Great Depression in 1934, the company developed the Lincoln system. The Lincoln system is a three-pillared approach towards employee compensation consisting of yearly discretionary bonuses, a piece rating system and a promise of guaranteed employment. Yearly bonuses are paid out based upon personal worker performance and company profits. The company uses a performance evaluation system to determine the amount of each individual’s yearly bonus. Lincoln Electric adopted the piece rating system so workers ' compensation is based upon the quality of each material unit rather than quantity of units produced (Dyer et al., C-114). In 1958, the company implemented the guaranteed employment promise which guaranteed workers up to 30 hours per week regardless of current economic conditions (Dyer et al., C-114). The Lincoln system has increased the company 's competitive advantage in the welding equipment market by increasing productivity and decreasing turnover rates.